When the government raises taxes on consumers and businesses, it is dealing with which type of policy?

Question

Quizplus · Accepted Answer

When the government raises taxes on consumers and businesses, it is engaging in fiscal policy. Fiscal policy refers to the use of government spending and taxation to influence the economy. In this case, raising taxes is a way for the government to increase revenue and potentially reduce inflation.

When the Government Raises Taxes on Consumers and Businesses, It